Debt packager business model under threat as FCA eyes referral fee ban

By Neasa MacErlean

The FCA is proposing a ban onreferral fees for debt packagers — a prohibition that goes to the heart ofthis sector’s business model, which is “based almost entirely on incomegenerated by referral fees”, according to the regulator. The ban would start inApril next year, following a consultationthat closes on 22 December.